The Gold Coast's Palazzo Versace condos? He Said/She Said

Following this week’s $US41.5 million auction sale of the former Versace mansion in Miami, our property contrarians, Jonathan Chancellor and Margie Blok argue whether to buy the closest thing locally- an apartment in Palazzo Versace on the Gold Coast.

Forget the ubiquitous Medusa. If you hanker for Versace décor, just buy a couple of cushions, not a theme park condo.

There's nothing comparable to your own Versace-designed pad. Especially the late Gianni Versace's extravagantly grandiose Miami mansion, Casa Casuarina, the 10-bedroom, 11-bathroom Mediterranean-style mansion, albeit on the very busy tourist strip, at 1116 Ocean Drive, South Beach. 

At this week’s court-ordered bankruptcy auction of Casa Casuarina, no less than the real-estate kingpin and TV reality-show celebrity, Donald Trump, was the underbidder for the property .

It sold to a group that includes New York’s Nakash and Gindi families who own the Hotel Victor, just next door.

International Versace devotees still have the Gold Coast option, and sooner or later Dubai, and then next Macau for cheaper Italian fashion house Versace resort property prospects.

The Gold Coast option came first, back in 2000, and the developer of the much-delayed Dubai resort Palazzo Versace has just this week confirmed the opening date has been pushed back another 12 months.

The developer Enshaa Services Group said it was now not due to open until the second half of 2014, having been due to open in 2009 on its Dubai Creek location.  They took control in a swap deal with the former Australian joint venture partner, Sunland Group, which took 100% ownership of the Palazzo Versace Gold Coast, with Sunland then subsequently selling their Gold Coast. 

No doubt true to the brand's signature ornate style, the 270-room Macau hotel is set to open by the end of 2017. It will operate on a similiar concept licencing agreement with the Versace Group have no interest it its day to day hotel revenues.

There are 72 Palazzo Versace condominium on Queensland's Gold Coast. And when not in use by the PV owners they often get rented out through the adjoining Palazzo Versace hotel. Some do it to recoup their body corporate fees.

Given there are only six permanent residents, this option seems to be the norm.

But beware you’ll be obliged to retain all the Versace décor -  described as the "stunning, irreplaceable, Versace furniture package”, as its a pre-requisite for letting through the hotel.

But why in the world would you want to rid the condo of the fixtures? Synonymous with Versace style - though certainly not everyone’s cup of tea - is the sumptuous and extravagant décor of these condominium interiors finished with gold leaf ceilings, gleaming marble and parquetry floors, faux marble columns, panelled walls, heavy silk drapes, padded bedspreads and de rigueur Versace silk and velvet cushions. 

On the Broadwater at Main Beach, Palazzo Versace has the condominiums with the adjacent hotel having 200 rooms and suites.

Over the years, the PV condominium owners have included fashion designer Lisa Ho (between 2000 and 2005); the former Daydream Island owner Vaughan Bullivant and his wife Carmel; the seniors' tennis champion, Adrian Alle, and the BRW Rich Lister Greg Poche - who incidently is still trying to flog the Channel 10 Bachelor mini series house at Bayview on Sydney's northern beaches. 

Didn't Brynne Edelsten snap one up last year?

And my spies tell me mining tycoon Clive Palmer picked up a couple of Versace condos too - which will no doubt pop up in any parliamentary pecuniary interest declaration he might make if he's elected to the Australia parliament.

Ofcourse international stars including the Rolling Stones and Beyonce have stayed in the luxury apartments since the hotel opened in 2000, the first of its fashion branded alliegance in the world. Last year the hotel sold for $68.5 million to a Chinese consortium following approval from the Foreign Investment Review Board.

They obviously chose to overlook educator and architect critic Norman Day's 2002 review which described the place as "a rather plain, little, prefabricated structure overburdened with the drippings of Donatella and serviced by young people wearing black and gold."

"The aim of the place is admirable: provide a good quality hotel and decorate it (well, smother it) with Versace colours, crockery, fabrics, cutlery, badges and "character".

"Most people will be pleased with the result," Norman Day was gracious enough to concede.

There are currently around six Palazzo Versace condominiums up for sale from a $1.1 million asking price

There's one that came onto the market with $1.5 million plus hopes in May (pictured below), a redecorated three bedroom, three bathroom pad which is is now listed at $1.35 million. Artisans have been at work, says the listing agent. Its marina is 15 metres. Apparently it's not in the hotel rental scheme as it doesn't have the official Versace furniture package.

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There is also a two-bedroom two-bathroom north-facing rooftop residence with a 21 metre marina berth, two car spaces and a storeroom (no doubt for the golf clubs). Offers are being sought above $1.1 million through Russell Stuart of PRDnationwide Surfers Paradise, whose realestate.com.au website listing notes: “The owners are serious committed sellers and have already purchased another property! Make no mistake, they are absolutely committed to selling! They have loved their time at 'Versace' but they are now moving to a colder climate - so this has to go! There are only a handful of north facing condos at Palazzo Versace, and even fewer with a 21 metre marina berth, so this is an exceptional opportunity!”

The dearest offering is an ambitiously priced $5.29 million penthouse. At least the leasehold title reduces the Queensland purchasing stamp duty. And no land tax too.

I recall writing after my first visit in 2001 that the 72 condominiums fetched record Gold Coast prices having sold off the plan and during construction. About 70% of the buyers were Australians who paid prices ranging from $900,000 to $4.9 million for one of the penthouses. The buyer composition has expanded a tad internationally, but seemingly the prices haven't strayed far from original purchase prices.

Back then the furniture and decor packages were costed between $200,000 and $400,000 on top of  the condominium purchase price.

Certainly buyers will find there's better value elsewhere on the Gold Coast, but each to their own. Keep an eye out for Versace-loving Kiwi vendors keen to take their money back home, or Sydneysiders from the Shire who want to reinvest their proceeds into a self managed super fund.

Oh one last thing - be sure to have your solicitor brief you on the unresolved issue of water usage costs.  The condominium owners claim they have been subsiding the hotel's water usage. And that's more than a trickle given its 200 spa baths, commercial kitchen, laundries and sumptuous lagoon swimming pool.